CLA-2-84:OT:RR:NC:N1:103
Jeremy Page
Page Fura, P.C.
939 W. North Avenue, Suite 750
Chicago, IL 60642
RE: The tariff classification of a distillation plant cold box from China
Dear Mr. Page:
In your letter dated July 9, 2021, you requested a tariff classification ruling on behalf of your client, Air Products & Chemicals, Inc.
The item under consideration is a fractional distillation cold box, model numbers GN, TN, and OA, which is installed within an Air Separation Unit (“ASU”) after importation. The purpose of the ASU is to produce gaseous or liquid nitrogen, oxygen, or argon products through the cryogenic distillation and refrigeration of air. Feed air is first processed in separate air filtration, compression, and purification systems of the ASU before it is sent to the cold box. The cold box is a prefabricated, painted carbon steel enclosure comprised of various components including a reboiler and condenser system, a heat exchanger, distillation columns, pressure vessels, pipework, valves, and instruments. The function of the cold box is to separate air into its component gases using their differing boiling points by distillation.
You state that the cold box will be imported in the following configurations: 1) the GN model will include a high pressure distillation column, reboiler and condenser system, and heat exchanger; 2) the TN model will include a high pressure distillation column, low pressure distillation column, reboiler and condenser system, and heat exchanger; and 3) the OA model will include a high pressure distillation column, low pressure distillation column, argon column, reboiler and condenser system, and heat exchanger. Due to the size of the OA model, the heat exchanger and argon column may arrive in separate boxes together with crossover boxes containing the piping and valves. In the GN and TN models, the pressure vessels, pipework, valves, and instruments will be incorporated into the cold box. With all three models, you state the cold box will be imported fully fabricated, disassembled but complete, in a single shipment.
The applicable subheading for the distillation plant cold box, model numbers GN, TN, and OA will be 8419.40.0080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof: Distilling or rectifying plant: Other.” The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8419.40.0080, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8419.40.0080, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division